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Cardano Faces Pressure from Whales, But in Most "Unlikely" Way

Fri, 08/19/2022 - 15:48
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Tomiwabold Olajide
Cardano dropped to trade below $0.5 mark following current market sell-off
Cardano Faces Pressure from Whales, But in Most "Unlikely" Way
Cover image via stock.adobe.com

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According to WhaleStats data, Cardano has returned to the top 10 purchased tokens among the 500 biggest BSC whales in the last 24 hours. This comes as Cardano dropped to trade below the $0.5 mark following the current market sell-off.

Whales or large entities are often known to utilize periods of large drops to buy cheaply.

On-chain data points to the recent accumulation of whales by Cardano. As reported by U.Today, addresses holding 10,000 to 10 million ADA added a combined 0.46% of the ADA total supply, or $138 million, from July 27 to Aug. 5, per Santiment data.

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Cardano Whales Grab $138 Million in ADA, Here’s Why It Could Be Interesting: Santiment

Santiment's analysts wrote: "Cardano shark and whale addresses have accumulated a combined $138 million in ADA in eight days after the mid-June dump around the local price top. This is only a mild accumulation for now, but could get interesting if this trend continues throughout August."

Whales buying Cardano dip

Cryptocurrencies saw a sharp sell-off on Friday as global markets retreated after U.S. Federal Reserve officials indicated the resolve to keep raising interest rates until inflation is contained. The latest reversal in sentiment has hit altcoins, which tend to be more volatile.

During the week, Santiment noted positive sentiment regarding Cardano but noted higher profit-taking than usual: "Cardano sentiment is rather positive at the moment, and prices are up +22% in the past 3 weeks. The ratio of on-chain transactions as profit taking vs. selling at a loss is at its highest level of profit taking since the final week of March," it wrote.

At the time of publication, Cardano was demonstrating a bigger drop, down 13% to $0.46 at the time of publication.

In positive news, Cardano investment products will now be available to clients of major German banks, Comdirect and Onvista. This comes as Valour announced an agreement with both banks to be a provider of crypto products for retail clients in Germany.

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About the author

Tomiwabold is a cryptocurrency analyst and an experienced technical analyst. He pays close attention to cryptocurrency research, conducting comprehensive price analysis and exchanging predictions of estimated market trends. Tomiwabold earned his degree at the University of Lagos.